Combine cilantro, garlic, jalapeno pepper, and lemon juice in a blender and process well. Set aside.
Warm 2 tablespoons oil in a large skillet over medium heat. Add cumin seeds and fry until brown, about 1 minute. Add chicken and fry until no longer pink in the middle and juices run clear, 5 to 10 minutes.
Pour in cilantro mixture and increase heat to medium-high. Add cumin powder, salt, and cayenne pepper. Cook until juices evaporate and sauce thickens slightly, 3 to 5 minutes, making sure to stir frequently to prevent burning. Add bell peppers and cook for 10 minutes more.
Meanwhile, heat 1/2 tablespoon oil in a large saucepan over medium heat. Add cinnamon stick, bay leaf, and cumin seeds. Add water, rice, and salt. Bring to a boil. Reduce heat to low and cover. Simmer until water is absorbed and rice is tender, 15 to 20 minutes.